Media magnate Kerry Stokes will stand down as chair of Seven West Media after the company announced plans to merge with Southern Cross Media.
In a deal that would merge two of Australia’s biggest media companies, the $400 million partnership would bring radio networks Triple M and Hit together with the Seven Network.
The move will see Kerry Stokes step down as the chairman of Seven West Media, which owns the Channel 7 TV network, The West Australian, The Sunday Times, Perthnow and 19 regional newspapers.
Mr Stokes would chair the board of the combined group until February 2026 when he will hand the reins to Heith Mackay-Cruise, the current chair of Southern Cross Radio.
However, Mr Stokes’ son Ryan will remain on the board to represent the family’s 20 per cent stake in the company he founded.
Jeff Howard, who is the current managing director and chief executive of Seven West Media, will take the helm of the media conglomerate as chief executive.
Seven West Media’s headquarters is in Osborne Park, eight kilometres from Perth’s CBD. (ABC News: Glyn Jones)
The companies say the merger would create a “leading integrated multi-media platform, delivering world-class content to national and local audiences” through free-to-air television, streaming, audio, digital and publishing platforms.
But the move will be closely scrutinised by Australian’s competition and media watchdogs, with regulatory approval still required from the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC).
While the boards of both companies have backed the merger, shareholders will also need to approve the plan.
A chart included in Seven West Media’s announcement of the merger showing the proposed structure. (ABC News: Gian De Poloni)
‘End of an era’
Media analyst Peter Cox did not believe regulators would block the merger to prevent further concentration of media ownership in Australia, especially as consumers continued turning their backs on traditional broadcast platforms in favour of streaming services.
“The broadcasting industry in Australia is dying, as it is around the world. Streaming has taken over, so we’re really seeing the dying days,” he said.
Media commentator Peter Cox said Kerry Stokes’ departure would mark the end of an era. (ABC News)
Mr Cox said Mr Stokes’ departure from Seven West Media would mark “the end of an era” but came as no surprise.
“Kerry is 85 now. He has loved owning a television network, but it has brought him a lot of grief in recent years,” he said.
While the Seven Network is the highest-rated television network nationally, Mr Cox said it was “totally undervalued” by the market, with the Seven West Media share price hovering around AUD 0.15 on Tuesday.
“It’s a great shame for a network that does exceptionally well on the ratings,” he said.
Seven West Media’s profits plummeted 63 per cent to $16.6 million in 2025, down from $45.3 million in 2024 amid falling TV advertising revenue.
He did not believe consumers would notice any difference with content as a result of the merger.
‘Don’t fear it’
When asked whether the merger would negatively impact media diversity, Western Australia’s Opposition Leader and former Channel 7 presenter Basil Zempilas urged people not to fear the move.
Former veteran broadcaster Basil Zempilas urged people not to fear the merger. (ABC News: Jake Sturmer)
“It is two very big companies coming together. How it plays out beyond that, I’m not sure, but my initial reaction was not to fear what was taking place,” Mr Zempilas told ABC Radio Perth.
The former veteran broadcaster, whose career in the media spanned 30 years and included stints at the 6PR and Triple M radio stations, insisted “there’s no editorial direction given to FM radio announcers”.
“When I was there, you were in there to entertain the audience and it was not political. In fact, you would discouraged from being political at all.”
Mr Stokes said the merger would bring together “the best creators of media content in the country” while delivering significant financial and strategic benefits for shareholders.
Kerry Stokes pictured with Prime Minister Anthony Albanese at a leadership breakfast in Perth in September 2025. (ABC News: Andrew O’Connor)
“This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers.
“It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country.”
Under the merger, Seven West Media shareholders will receive 0.1552 Southern Cross Media Group (SCA) shares for every Seven West Media (SWM) share, which would result in SWM shareholders and SCA shareholders owning 49.9 per cent and 50.1 per cent of the combined business, respectively.
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